Yes, the light blinks yellow when I hit the pedal in the top right corner of Live.

When I record a midi clip I don't see anything recorded when I hit the sustain pedal. I only see the piano keyboard's notes show up. The reason I'm pretty sure Live is aware of the CC 64 notes coming from my pedal is because it tells me so when I map the pedal to a control.

I guess it could be possible that the software instruments I'm trying in Live don't support sustain, but I would expect the default piano keyboard to have pedal support. I'm using the 'Live 8 Library' one under 'Live Devices' -> 'Instruments' -> 'Instrument Rack' -> 'Piano and Keys' -> 'Acoustic Pianos' -> 'Keys-Acoustic Piano'.

Please help, Ableton!!!! I have exactly the same problem. When I play my keyboard (it doesn't matter what the type of keyboard is because the problem is with Ableton live) I hear the sustain working perfectly, when I hit record and record the part, its sounds perfect when I am playing it, however when I listen back there is no sustain to the sound (as if I didn't use the sustain pedal as all). But if I look at CC64, I can see the recorded sustain pedal movements perfectly recorded. This seems to be a major flaw with Live and an extremely common problem. Please tell how to solve this.